Safe Dollar Crypto (June) Falls To $0 After Exploit! >> The guide shares details about the stable coin attack, resulting in the price collapse.
The decentralized algorithmic finance or DeFi stablecoin SafeDollar with ticker sign SDO has been hacked, as per the statement published online on social media. It is no longer considered the stablecoin after the attack because its price collapsed to “0.”
Stablecoins are the cryptocurrency or token pegged to specific fiat currencies, including the United States dollar. But, in SafeDollar, it is used to blend unique features of seigniorage, synthetic assets, and deflation protocol as its base.
Below you will find more details about the Safe Dollar Crypto price decline.
What is Safe Dollar?
Safe Dollar is the new DeFi crypto token based on the Polygon blockchain system. It is a stablecoin that is making news these days after its value crashed to zero. The token’s value is pegged to the United States dollar, and it crashed to zero after scammers exploited a bug into its code.
As the news of hacks started circulating, the stablecoin community got wind of the attacks. The details regarding the attack are yet to be disclosed, but the contracts on the website indicate that over $200 000 has been siphoned from the smart contract of Safe Dollar Crypto.
The news resulted in the complete collapse of the market cap and value of the stablecoin, and the participating community is not happy with the news. The investors are now waiting for the official press release from the admin and want to know if compensation will be paid for it.
More About the Safe Dollar Attacking News
As per the sources, the stablecoin DeFi project SDO or SafeDollar released a detailed analysis confirming another attack a few days ago before the recent value collapse. Furthermore, a member from the community has confirmed on 20th June that Safe Dollar Crypto was under attack resulting in the loss of 9959 SDS.
The team also confirmed that the project protocol is smoothly functioning on social media, and nothing has been impacted after the attack. As a result, it participated in the flourishing list of stablecoin.
Recently, on the Twitter channel, the core developer of SushiSwap, Mudit Gupta, tweeted that the DeFi project has been hit by attackers resulting in infinite exploitation, and it is because of the bug injected in its code.
How Attackers Exploited the Safe Dollar Crypto?
After researching, we found a report from the Core Developer of SushiSwap, Mudit Gupta. He confirmed that the value of the SafeDollar plummeted to zero after attackers have exploited a big into the code of the coin and withdraw the coin from its liquidity pool.
As per his report, the attackers managed to loot around $250 000 worth of SDO coin from its LP pool and dumped the coins on the crypto market to sell them via PolyDEX.
However, the SafeDollar administrators confirmed on the Telegram channel that the platform has suspended the activities and investigating the matter. After the investigation, the team will publish a plan for compensating the liquidity providers.
What Protective Measures Are Followed?
The Safe Dollar Crypto team confirmed the attack on their Telegram channel, SafeDollar Announcements. They also urged the community to suspend the operations with the coin, and after the investigation, they may come forth with a compensation plan.
The team has urged all members and the community to stop trading related to the SafeDollar coin until the investigation is completed and a detailed report is published.
The algorithmic stablecoin project on the Polygon Ethereum Sidechain, Safe Dollar, has been under attack, collapsing its market value to zero after the attack.
The attackers have exploited a bug into Safe Dollar Crypto code to scam around 214 quintillion token units.
The project was recently launched on 11th June 2021 and experienced attacks two times, resulting in huge losses. There are many other Cryptocurrency Scams that you must learn to avoid in the future.
Do you have anything to add about the price decline of the token? Please share it in the comment section.